please find attached our latest newsletter on economic developments in Ukraine. After the convincing double election win of President Zelenskiy and his team, we are very optimistically looking into the coming years in Ukraine. For the first time in more than a decade, a substantial change for the better across many industries can be expected in a country with a huge catch-up potential. The first activities of the new political team give hope for a fast-track implementation of a courageous reform and liberalization agenda. It could be the final trigger to jumpstart the urgently needed investment stream into key industries and to end the chronic equity shortage of the corporate sector.

This quarter was rich in political and economic highlights, with the approval of the bill on the anti-corruption court and securing another € 1 bln from the European Council to cover Ukraine’s financial needs being, undoubtedly, among the most important ones for further progress and meeting up the expectations of the international community.

Slowly, but consistently, Ukraine sees retail trade grow by 7% and a 37% increase in capital investments Year-over-Year in Q1 2018. There is a reason to look optimistically into the coming quarters.

kindly find attached VI2 Partners newsletter on the recent developments in Ukraine as well as a quick overview of the latest important news and some statistics contributing to the whole dynamics of Q1 2018. We are experiencing positive developments from Tesla’s Hyperloop test site project in Dnipro to traditional industry players from US and Asia investigating or entering the market in Ukraine. Industrial and agricultural assets are still valued at very low levels, the time has come for the strategic investors.

Slowly, but consistently, Ukraine is breaking through the political and economic turmoil. Ukraine has climbed four positions in the Doing Business 2018 raking of the World Bank and advanced 105 positions in the field of ease if obtaining construction permits as well as 41 positions upwards in the indicator “tax payment”.

The Government is proceeding with the reforms to raise the effectiveness of the national economy and encourage local as well as international businesses to invest and develop their capacities in Ukraine. The net inflow of FDI in Ukraine in January-September increased 40 % in comparison with 2016.

However, a slow-down in the fight against corruption and recent setbacks in that regard have raised the attention of foreign investors and Governments and should be watched carefully.

Overall, there are enough reasons to optimistically look forward to the year 2018.

VI2 Partners would like to express warmest season’s greetings and to wish you and your families a successful and healthy 2018!

VI2 Partners is sharing with you the latest newsletter on recent developments in Ukraine and a snapchat of political and economic events in Q3 2017.

Summer was rich in both economic and political highlights. Ukraine started recovering from the crisis triggered by the political turmoil of 2014, the national currency is getting stronger, Ukrainian state-owned companies are finally reporting sufficient surplus with Naftogaz Ukrainy, Ukrenergo, Ukrainian Sea Port Authority, Ukrhydroenergo being among the most profitable state-owned assets (SOE) in 2016, according to the Top 100 SOE report prepared by the Economic Development and Trade Ministry.

Last but not least, Moody’s upgrading the outlook for Ukraine from stable to positive contributed to the overall positive dynamics and virtually serves as the best confirmation of the existing and upcoming positive changes.

Amid the prolonged political instability and financial difficulties, Ukraine’s economy is demonstrating the hidden potential and distinct signs of recovery.

This gives us the reasons to assume, that the country is slowly coming back onto the radars of foreign investors, with upcoming deregulation and institutional reforms contributing to the overall economic upturn.